You've seen the ads: One credit repair outfit guarantees it can boost your credit score by 100 points in three weeks. Another says it can help you remove 98 percent of the negative information in your credit file.

You should steer clear of companies with claims like these, according to the Federal Trade Commission and California-based Fair Isaac and Co., creator of the FICO score. Overnight credit score miracles are either impossible or illegal.

But if you're trying to boost your credit score modestly - by maybe 20, 30 or even 50 points, there are some secret do's and don'ts that are perfectly legal and fairly easy:

•Use credit: If you don't have a car or home loan you're currently paying, then use a credit card regularly and pay it off each month.

Jay Seaton, president of the Consumer Credit Counseling Service of Northeast Ohio, said it's ironic that many people - particularly older folks - are proud that they pay cash for everything and never use credit cards. But at some point, their credit scores will suffer and that could drive up costs insurance premiums, which are based in part on credit scores.

"To get a good FICO score and show a lender that you are managing your credit responsibly," said Barry Paperno, consumer affairs manager for Fair Isaac's myfico.com, "you have to demonstrate your ability to manage credit responsibly. Not using credit does not satisfy that requirement.

"It is a good idea to use some kind of credit regularly," Paperno said, suggesting once every few months.

• Split up balances: If you're married and have credit card balances, split up the debt.

Say you have two cards with $5,000 balances. It looks on your credit report like you have $10,000 in debt and your spouse has $10,000, when you as a couple actually have only $10,000 total.

The double-accounting brings down both of your scores.

Paperno said the scoring models aren't structured to ignore the double-hit.

To improve a couple's scores, they could have one card in the husband's name and one in the wife's name and it would suddenly look like each owed $5,000 less in credit card debt and that would likely boost both of their scores.

What makes up your credit score:

Payment history: 35 percent

Outstanding debt: 30 percent

Length of credit history: 15 percent

Credit inquiries: 10 percent

Types of credit used: 10 percent

•Latch on to an account: If you have a short credit history or have debt, get yourself added on as an authorized user or joint owner on someone else's account that has a good payment history and a low or no balance, Seaton said.

You don't need to have the actual card or use the account.

The best part: If the account is 10 years old, the entire 10-year history will transfer to your credit record.

Being a joint owner carries slightly more weight than being an authorized user, Paperno said, but they're regarded mostly the same.

• Shift debt: If you have credit card debt, consider putting it on an equity line or loan.

Balances on mortgages - first or second mortgages - don't really hurt your score much. Credit card balances of $50,000 could devastate your score; a $50,000 home equity line wouldn't hurt you much at all.

Realize, though, that you could be putting your home at risk if you don't repay. And home-equity lines and loans are more difficult to get these days.

Often times, the same credit card account can appear on your report two or three times if you get a new account number or if the card portfolio or bank gets sold.

Too many tradelines - either open or closed -- can hurt you. If you have a lot, you can dispute them as duplicates.

The number of tradelines falls in the category of "types of credit in use," which accounts for only 10 percent of your credit score. Reducing duplicate tradelines wouldn't help most people a lot, Paperno said, but could add a few points.

While you're looking for tradelines, look for other errors. Each of the nationwide credit reporting companies -- Equifax, Experian and TransUnion -- is required by law to provide you with a free copy of your credit report once every 12 months if you ask. The three share a toll-free phone line and web site for requests. Go to www.annualcreditreport.com or call 877-322-8228.

Or you can send your information to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Include your full name, mailing address, Social Security number, date of birth and previous mailing address if you've been at your current address for less than two years. Also indicate which company's report you want: Equifax, Experian or TransUnion, or all three.

•Keep high limits: Don't lower your limits on credit cards; lower limits hurt you even if you pay off balance every month.

One of the most critical things that credit scoring looks at is the amount of credit you're using. The amount you owe counts for 30 percent of your score, and the proportion of credit you're using is part of that category.

This proportion is important regardless whether you pay your balance in full in month.

Say you have a $3,000 credit limit and charge $2,000 that you plan to pay off in full the next month. You know you're going to pay that off, but the credit scoring model doesn't. So it looks like you're using 66 percent of your available credit, and that's not good.

You should aim to keep statement balances at 25 percent or less of available credit.

•Keep accounts open: Don't close credit accounts, even if you're not using them.

Seaton agreed that it's counterintuitive, but true. Not only do you want to keep your available credit that's not being used as high as possible, he said, you also want to maintain your oldest accounts on your files.

• Open a new card: If you have only one credit card or have high balances on a few, consider opening a new account that use only once or twice a year and pay in full. Again, this will dilute your credit in use.

For additional help or questions about your FICO score,

• Avoid lower-tier lenders: Don't use a finance company for an unsecured loan.

The credit scoring model will ding you a little for using companies like finance companies or rent-to-own stores. "It's going to be better for your score to go with your bank," Paperno said. "But taking a loan out from a finance company is not going to take a high score down to a low score."

So if you're carrying a big balance, it's less damaging to have it on the store card than on the bank card.

•Dilute bad credit: If you have a shaky credit score, open a new card.

Paperno said adding good credit to the bad credit will help dilute the bad.

A low score might mean you have to start with a secured credit card, he said. "Some people would be surprised how quickly their score improves," he said. He said people with low scores should get one or two secured cards, use them periodically for small amounts, pay them off and just wait a year or two for their score to increase significantly.

• Pay old debts with caution: If you have an old collection item, consider carefully whether you want to pay it off.

Say you have a credit card bill that's more than six years past due. It's already beyond the statute of limitations in Ohio and will fall off your credit report at seven years.

But if you decide to pay the bill or get on a payment plan, that could start the seven-year clock running all over again.

Seaton at Consumer Credit Counseling said clients have run into this problem: They try to do the right thing by paying a debt, and it hurts their credit score more. This is becoming a big problem, he said, because of the prevalence of debt-buyers, who purchase old debts for pennies on the dollars and harass people who thought their old bills were long gone.

"I don't want to be in the position of telling people they don't have to pay off their debts, but there has to be a balance" of considering what could happen, he said.

Related Stories

Top Workplaces

Sun News Feature

It’s Your Business is a Sun News feature compiled by the business owners themselves to spotlight local small or new businesses on topics such as the business’ specialty product or service, history and any plans for the future. ... Tell us about your business»

Follow Us

cleveland.com is powered by Plain Dealer Publishing Co. and Northeast Ohio Media Group. All rights reserved (About Us).The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Northeast Ohio Media Group LLC.